All Forum Posts by: Account Closed

I am looking to start a real estate investing club in my Ole Miss college town, Oxford, Mississippi. It is a booming real estate market, with overflowing demand, and high prices. I was a member of a REI club in Kansas City, with many members, and there is not one here in Oxford. Looking to change that and could use any tips/advice for how to go about this the best way.

Number look right. Think there could be better deals out there to be found, this gives you a 5.6% cap rate.

Okay so same rule applies, just 50% of one doors rent minus loan amount? Just looking to live free and gain experience dealing with tenants, even though PMs will probably be required on most of my properties.

What are some rules of thumb or advice when buying an owner occupied duplex?

Great post @Ben Leybovich. That helped a lot.

Yes I agree with you James, sometimes I just find these low income areas are producing double or triple the average return assuming repairs and some vacancy.

http://www.realtor.com/realestateandhomes-detail/2907-E-28th-St_Kansas-City_MO_64128_M80660-27783

What do you guys think about this deal?
Asking Price: $110 k
Units: 6
Areas Average Rents: $650
Down Payment: $27,500
Monthly Mortgage: $544

Gross Operating Income: $46,800
After 50% Rule: $23,400
Net Operating Income: $16,800
Cap Rate: 15%

Property would need some work, but occupancy shows 80-90%

What is your guys 2 cents on investing in multi-family homes in undesirable areas? Obviously this wouldn't be any investors preference, but when running numbers, the price of these types of properties seem to be the only investments with solid cap rates and second looks. Is it worth taking a much lower cap rate in more desirable locations, even if tenants are in place and a PM is in place as well?

What do you guys think about this deal? Not looking to invest in rentals now, but running some numbers for fun. http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?LID=17945154&PgCxtGuid=adcb6f19-18fd-42c9-b04d-7aa4b5ac6beb&PgCxtFLKey=Profile&PgCxtCurFLKey=PropertyRecord&PgCxtDir=Up. Asking $60,000, i estimated $100 k in after repairs, and numbers still give me a 30% cap rate.

If you had to start from zero, what would be your investing plan to reach 7 figure wealth. Curious to hear different outlooks or actual success stories.